In this month’s Reputation Report, we’re analysing the concept of honesty and how it links to reputation. We have Manchester United manager Ruben Amorim and his brutal assessment of his team’s performance. We also have Elon Musk and that salute; how does this align with the values of his Tesla customers? Finally, we have Chancellor Rachel Reeves and her ‘honest’ assessment of the UK economic picture. How credible is this newfound positivity when juxtaposed with her recent statements to the contrary?
Ruben Amorim and the perils of being ‘too honest’:
Tim Jotischky, Divisional MD, Reputation
As communications advisors, we often tell clients that they should be honest and transparent in their public statements. But can leaders be too honest?
Manchester United manager Ruben Amorim offers an intriguing case study. After a defeat to Brighton, he called his team “the worst team maybe in the history of Manchester United” and threatened to bench the erstwhile Marcus Rashford for a 63-year-old coach.
I recall performing a media role for former Premier League manager Roy Hodgson on matchdays and it was an eye opener – even for me as a former sports editor. Under immense media pressure, managers often regret post-match comments. Amorim, however, knew what he was doing, telling journalists: “I know you want headlines…here you go: your headlines.”
Amorim’s intended audience was likely a combination of his players, supporters and board. To an extent, it was the classic kitchen sinking tactics of a new CEO taking over a public company – or a Chancellor, ridiculing the performance of her predecessor.
Honesty builds trust, but it’s a one-way street. A reputation for straight talk is hard to reverse and once you have earned a reputation for telling it like it is, it’s hard to perform a U-turn. In football, as in any business sector, a leader has to be consistent in how they communicate. Honesty is often the best policy, but it’s rarely the easy option.
What does Elon Musk tell us about politically vocal business leaders?:
Neil McLeod, Divisional MD, Corporate
Joe Biden no doubt had Elon Musk in mind in his parting-shot speech on an “Oligarch” culture growing in America.
Divisive Musk has not only made himself loud in US politics, but in the UK and Europe too.
His presence presents an interesting view on where politics and business collide.
The Times recently reported new research suggesting car buyers in the UK are being put off buying a Tesla by Musk’s increasing push into the political arena.
Just days later, it was reported that Tesla fell worryingly short of fourth quarter revenue forecasts to the tune of $2billion, largely due to flagging demand for its tiring line-up.
Questions were naturally tabled by Tesla investors concerning the results, demanding answers of Musk’s role in US politics, his backing of Germany’s far right party, and that “was it, wasn’t it?” salute at Trump’s inauguration.
One investor even quizzed: “How much time does Elon Musk devote to growing Tesla, solving product issues, and driving shareholder value vs. his public engagements with Trump, DOGE, and political activities?”
Elon Musk may put his desires on political influence over his role as boss of Tesla. He may even believe the two can live harmoniously side-by-side.
Musk is of course an extreme example. But it does serve to underline the issue of CEOs face when stepping into the political arena, particularly when views seem to be out of kilter with the business’s investors and target consumers.
Powerful characters are often so intrinsically tied with the image of the brand they serve. That means their reputations are also tied in, and any CEO taking the step into politics must at least consider the impact. Most CEOs do so when they see opportunity to boost – or protect – their business as the key objective.
If they fail to see the dangers of not being aligned with the brand, consumers and investors will certainly be quick to remind them that the game – and their position – can quickly change.
Rachel Reeves and a stark contrast in messaging:
Robin Brant, Associate Director, Reputation
I want to talk to you about the power of words, messaging consistency and the realisation that, frankly, your regular bedtime story has really put the frighteners up the kids, and now they can’t sleep.
Chancellor Rachel Reeves, Sir Keir Starmer, and most of the Cabinet have all been telling us a story about our economy, its past and its future, since Labour’s election win last July. But it was the Chancellor who quickly garnered a reputation for warning about ‘tough decisions’ and the parlous state of her fiscal inheritance. Call it Realpolitik. Call it canny politics. Call it straight talk. It was often an exercise in deep pessimism.
It wasn’t just a story; then came the budget that matched the words. Not much has changed since then. But everything has changed since then. UK debt – might – start falling by, just about, the end of this parliament, in 2029. The bigger picture hasn’t shifted. But consumer confidence has, business sentiment has, the bond market did, and the poll numbers have too. Not a good combination.
Business confidence is crucial for a government that wants the economy to grow. It’s crucial for a party that wants to be re-elected. So now the message is grow, grow, grow; Silicon Valley between two of our great universities, an arc, spades in the ground, a new stadium for the world’s biggest football brand and an extra runway at LHR (which may be 20 years away). Rachel Reeves has even promised a fight over it, if necessary. She’s gone from ’tough decisions’ to a flavour for deregulation and a ‘fight for growth’. Almost everyone is receptive to that message.
But the contrast in messaging is stark which brings problems. It’s easily perceived as an admission that the bleakness served only to make things worse. The swing to mega-positivity also presents challenges. Your audience – among them voters – are less inclined to see you as credible because of your seismic swing.
The other significant challenge for the Chancellor is one I’ve written about before. The one that’s key to communication, and politics; delivery. The message has to be accompanied by things actually happening, and having a positive impact, and being associated with your doing. Rachel Reeves has been reminded about the power of words. No one in Downing Street will need reminding about the necessity for delivery.